New Zealand: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Monetary and Financial Policy Transparency, Banking Supervision, and Securities Regulation

IMF Staff Country Reports, May 5, 2004

Source details

Canonical URL: New Zealand: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Monetary and Financial Policy Transparency, Banking Supervision, and Securities Regulation

The assessment reveals that New Zealand has a profitable and well-functioning financial system, operating in a framework of well-developed financial markets.
Short-term risks to stability appear low, given the favorable macroeconomic outlook, and sound and transparent financial policies.
Stress tests for systemically important banks show resilience consistent with the sector’s relatively high levels of capital and profits.

Short-term risks: described as low in the report, linked to a favorable macroeconomic outlook and sound, transparent financial policies.
Market context: financial markets are characterized as well-developed and supportive of a well-functioning financial system.

Profitability: the banking sector is identified as profitable.
Capital and stress testing: systemically important banks exhibit resilience in stress tests, attributable to relatively high levels of capital and profits.

Subjects: Banking, Commercial banks, Financial institutions, Financial markets, Insurance, Insurance companies, Nonbank financial institutions, Securities markets
Keywords: Australia and New Zealand, bank, banking sector, building society, Commercial banks, CR, disclosure regime, exchange member, Insurance, Insurance companies, ISCR, market, market discipline, market friction, market intermediary, market participant, Nonbank financial institutions, operations accounting, parent bank, return on assets, Securities markets, swap market, well functioning market